1) System suppose to read the flash drive and throw the message what do you want to do; view folder, etc
-System reads the flash drive as I can see the icon in system tray and also in
My Computer, I can see that drive.

However, when I double click it, it seems it processes for 2 or 3 second, after that I just see the cursor. It does not throw any messages. It simply does not open.
I tried in other laptop, the same problem. However, my other flash drive works in both the laptops.

This one became a frequent problem and I had to do something to get rid of it. So here’s a “fix / workaround”. You need to “clean” the flash drive first and cleaning the drive is just half the thing. Because the double click actions are stored in a file inside your flash drive named “autorun.inf”. Now this file is generally not visible, not even if you have your show hidden files setting is enabled. The reason is that it is a system file. This file will contain the root entries, of what files are to be executed when a double click on the flash drive icon is performed. A normal virus scan doesn’t remove these entries from the autorun file, as applications, under normal conditions, do not have the permission to interact or edit files with system attribute.
Plug in your flash drive. Open the command prompt and change directory to be in the root directory of your flash drive. Now type the following command. attrib –s –h autorun.inf
Make sure you are in the root/main directory of your flash drive. Now after this command executes. The autorun.inf file should be visible. The contents should be somewhat similar to the one shown below.
[autorun]open=.\Recycler\AutoLaunch.exe“The above command governs what the default double click action will be do.”
The following entries are the modified right click entries. These right click entries were hacked to run different Trojan executables. shell\1=Openshell\1\Command=.\Recycler\AutoLaunch.exeshell\2\=Exploreshell\2\Command=.\Recycler\AutoLaunch.exeshellexecute=.\Recycler\AutoLaunch.exeComing to the clean up part:
Delete all the lines except the first [autorun]. And save the file. Go to the command prompt again and type the following command:attrib +h +s autorun.inf.
This should help you solve the double click-to-open issues of your flash drive.
And you can also find out where the Trojan executables are residing. For example in the above case the executables can be found inside Recycler folder, again another hidden folder.

Thank you very much for your prompt and detailed reply. I had forgotten to mention one point in my last post. While I was trying to overcome this problem, I formatted my flash drive to see if that resolves the problem but it didn't.
Now, I wanted to make sure that formatting flash drive have not changed your given suggestion.

I agree with horheg that there might be an autorun.ini corrupted file, or an autorun.ini that has a virus encoded on it...

Get a good anti virus program and scan your system... it happened to me once, where in my flash drive does not open up by double clicking, and I had to remove the autorun.ini file manually, and it again started working like normal...

however, it should have been corrected once you formatted your flash drive, so in essence it should have been corrected. chances are that your main drive is infected...